£50,000 Business Loan needed

ajbrynoffa

could anyone reccomend any good deals please?

lifechanging

Speak to your bank about the Small Firms Loan Guarantee Scheme from the DTI. It's a government initiative and offers (slightly) lower rates of interest and quite wide criteria for acceptance. Hope this helps.

ajbrynoffa

ok thanks matey,anymore suggestions anyone?

inmypocketnottheirs

What do you need the loan for, what is your turnover, profit percentage, how long has your company been trading, are you Ltd or a sole trader?

ajbrynoffa

its to buy the lease on a pub........turnover average over the last 4 years..£260000.............net profit £50000 per annum......16 years left on the lease

Mark7799

How much have you got to put into it?

ajbrynoffa

the lease is 90000,we`ve got £10000 so we can release £40000 on our house andneed the rest as a business loan

ManAtHome

Does that also cover fixtures & fittings, stock, guarantees, personal license, music license, sky, surveys, solicitors etc. and how is the net profit going to be affected by gas, electric, water, business rate, staff (minumum wage) increases since the last P&L. What's the deal on rent reviews (a lot tend to be "upwards only")? Is it a tied house - if so, how "guaranteed" are the cost prices?

How is the pub likely to be affected by the smoking ban next year, late licenses at nearby premises (extra costs if you want to keep up)? Were there any significant objections when the licensing law was changed (every pub and licensee had to re-apply for a license).

Not trying to get into a "is it a good idea", just trying to flag up some of the questions you may (or should) be asked.

Have the Brewery/Pubco pointed you at sources of finance? (or if it's a Free House, the selling agents).

Would recommend you get your legal and accountancy advice from people with pub trade experience, not just "general purpose" practicioners.

A trade link you may find useful http://www.morningadvertiser.co.uk/ (also tried thepublican.co.uk - site was down, so not sure if this is the correct url).

Mark7799

lifechanging wrote:

Speak to your bank about the Small Firms Loan Guarantee Scheme from the DTI. It's a government initiative and offers (slightly) lower rates of interest and quite wide criteria for acceptance. Hope this helps.

SFLG wouldn't be eligible if the business has already been running for more than five years

ajbrynoffa

With all due respect this has been looked at in depth and the business plan,which includes solutions to all the above factors has been approved by at least 1 bank,i was just looking for other sources of finance.......but thanks for everyones comments and help.

inmypocketnottheirs

Sorry for the delay in responding to your answer to my questions. It seems if you have everything covered, and wish the OP the best of luck. Any chance of a free MSE pint!?!?!